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Add to Preferred SourcesThe Asian Development Bank (ADB) will invest 5 billion Thai baht ($155 million) in Thailand’s B.Grimm Power Public Company Limited’s (B.Grimm Power) maiden 5-year and 7-year green bonds—the first certified climate bonds to be issued in Thailand. Proceeds will finance renewable energy projects in Thailand, helping to establish a low-carbon pathway for sustainable economic growth.
“This green bond will help Thailand achieve its target of reducing greenhouse gas emissions by an unconditional 20% by 2030,” said Director General of ADB’s Private Sector Operations Department Mr. Michael Barrow. “B.Grimm is a pioneer of renewable energy and low-carbon growth in Thailand and increasingly across the region, and ADB is honored to be its long-term partner in this effort.”
The green bond proceeds will be earmarked for nine operational solar power plants with a total capacity of 67.7 megawatts (MW) and seven solar plants under construction—all in Thailand and with a total capacity of 30.8 MW.
This is ADB’s second green bond project. In 2016 it extended a guarantee to support an issuance for the Tiwi and Makban geothermal power project in the Philippines—the country’s first green bond offering. It is ADB’s third transaction with B.Grimm. In 2017, ADB subscribed to its initial public offering. Early this year it signed a loan agreement with the company to support expansion into renewable and distributed power generation markets throughout Southeast Asia.
This investment is in line with ADB’s new Strategy 2030, which mandates that at least 75% of the number of ADB’s committed operations will support climate change mitigation and adaptation by 2030, with climate finance from its own resources reaching $80 billion over 2019–2030.
Original source: ADB
Published on 11 December 2018